Help me understand tax?

[Pie-Roe]

Hi, I recently started a job at B+Q part time with an 18 hour week @ 5.44 an hour. This puts me at £97.92 a week, 5,092.00 a year.

I got my first pay slip today, and it would appear I have paid tax. I have no problem with this, but I was under the impression that as I am only 16 and still in more than 12 hours a week education I do not have to pay it. Can someone explain it more fully than my supervisors 'M-idno', and explain if I am tax exempt how I can rectify it.

Thanks
Pyro
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[Davo]

I'm not aware that students were exempt from paying income tax (I certainly did when I was studying), it sounds like you've only just exceeded your personal allowance (what tax code are they using? 503L?)

What they are likely to be doing is averaging out your tax as if your going to be working the full 12 months, if this isn't the case you should be entitled to a refund around April time.

[thegubner]

I think its only 16 hours and under that is tax exempt.

[stinkwheel]

You are due them tax. I make it £5.70 for the year.

CLICK
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[Pie-Roe]

Aww thanks. Did a 46 hour week this one, moneys , Il be able to afford a bike soon.

Thanks to you guys,

Pyro
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[yambabe]

[thegubner]

[stinkwheel]

[Pie-Roe]

Ok, it says


Annual salary: 5,092.00
Hourly rate: 5.44
Contract hours: 18
Contract days: 3
Gross pay 154.30
Taxable pay: 154.30
Tax paid: 33.88
NI employee: 0.00

its 154 because of some overtime (or something I did )

Pyro
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[yambabe]

Pyro you're on the wrong code! They are taxing you at Basic Rate and not giving you any of your tax-free allowances. This is common in part-time jobs because they often assume that you have another "main" income elsewhere. Ask for a P46 ASAP and it will all get straightened out. Takes about 4-6 weeks usually then any tax that has been deducted will come back to you in your wages.

Guv sorry if that came across as a bit harsh but the hours you work have NOTHING to do with how much tax you pay, it's all based on the amount of money you earn. Maybe 16 hours in the pub at the hourly rate kept them under the allowance limit? What if you were working 16 hours at £30/hour, that would be £480/week! Think you would stand any chance of not getting taxed on that? However, if you work less than 16 hours per week you CAN still claim JSA so maybe that has confused the issue for you as well?
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